Cybersecurity Emerges as Top Organizational Threat for Indian Businesses
According to the recently released FICCI-EY Risk Survey 2026, cybersecurity breaches and attacks have been identified as the most significant risk to organizational performance for Indian companies. The comprehensive study, which gathered insights from senior decision-makers across various sectors, found that a substantial 51 percent of business leaders consider cybersecurity their primary concern.
Technology Risks Dominate Business Concerns
The survey results clearly demonstrate that technology-related risks are becoming increasingly intertwined with operational continuity and business resilience. Following cybersecurity, changing customer demands ranked as the second most significant risk at 49 percent, while geopolitical developments followed closely at 48 percent.
Digital disruption is affecting competitive positioning, with 61 percent of respondents acknowledging that rapid technological change is impacting their market position. An equal percentage identified cyber-attacks and data breaches as major threats to both financial stability and corporate reputation.
Specific Cybersecurity Challenges Identified
The report detailed several specific cybersecurity concerns facing Indian organizations:
- 57 percent of respondents reported potential data theft and insider fraud as significant risks
- 47 percent acknowledged difficulty in addressing increasingly sophisticated cyber threats
- Technology sector accounted for the highest share of respondents at 21 percent
- Professional services followed as the second most represented sector
Artificial Intelligence: Opportunity and Risk
The survey highlighted Artificial Intelligence as a particularly complex risk area for Indian corporations, representing both significant opportunity and substantial exposure. While 60 percent of respondents indicated that inadequate adoption of emerging technologies, including AI, could negatively impact operational effectiveness, 54 percent expressed concern that AI-related risks such as ethical and governance challenges are not being managed effectively.
Broader Risk Landscape for Indian Businesses
The FICCI-EY survey revealed several additional risk factors that Indian companies must navigate:
- Workforce and Talent Management: 64 percent of respondents identified talent shortages and skill gaps as potential threats to organizational performance, while 59 percent cited weak succession planning as a risk to business stability.
- Regulatory Compliance: 67 percent of executives emphasized the need to address regulatory changes proactively, with 40 percent acknowledging that their compliance frameworks struggle to keep pace with regulatory shifts.
- Climate and ESG Risks: Nearly 45 percent of respondents cited financial impact due to climate change as a critical operational risk, while 44 percent indicated that non-compliance with ESG disclosure mandates could have significant business consequences.
- Supply Chain Disruptions: 54 percent of executives flagged supply chain disruptions as a continuing risk to operational and business continuity.
Expert Perspectives on Evolving Risk Management
Rajeev Sharma, Chair of the FICCI Committee on Corporate Security & DRR, commented on the findings, stating, "In a business environment shaped by volatility, the ability to anticipate, absorb and adapt to risk is emerging as a defining capability for sustained growth. The report indicates that organizations are moving away from treating risk as episodic and are instead embedding it into strategic decision-making."
Sudhakar Rajendran, Risk Consulting Leader at EY India, added, "Organizations are navigating a phase where multiple risks are converging rather than occurring in isolation. Inflation, cyber threats, AI governance, climate exposure and regulatory change are interacting in ways that directly influence India Inc's performance and resilience."
Survey Methodology and Scope
The comprehensive study was based on a web-based survey of 137 senior decision-makers, including CXOs from various industries. The findings reflect the perspectives of business leaders who are actively engaged in strategic planning and risk management within their organizations.
The survey results underscore the complex and interconnected nature of modern business risks, with cybersecurity emerging as the most pressing concern for Indian companies as they navigate an increasingly digital and volatile business landscape.
